EPA Halts $7 Billion Solar Program Amid Legal Hurdles

Aug 8, 2025 10:13 AM ET
  • EPA halts $7B Solar for All program, sparking backlash and legal threats. Critics warn of job loss and decarbonization setbacks as states scramble to fill funding void.

The U.S. Environmental Protection Agency (EPA) has terminated the $7-billion Solar for All grant program, aimed at supporting residential solar installations in low-income communities. EPA Administrator Lee Zeldin cited legal constraints following the repeal of the Greenhouse Gas Reduction Fund under President Trump's "One Big Beautiful Bill." Zeldin criticized the program's complex funding structure, which he claimed diluted taxpayer dollars and risked incomplete projects.

The program, launched in April 2024, had already allocated funds to 60 recipients to deploy over 4 GW of solar power for 900,000 households. Its cancellation has sparked backlash, with critics like Senator Bernie Sanders calling it illegal and vowing legal action. Clean-energy advocates warn the decision could hinder job creation and federal decarbonization goals. With the program's end, affected households must rely on state incentives and the 30% Investment Tax Credit, while some states plan to expand their own solar initiatives to address the funding gap.

Why did the EPA terminate the $7-billion Solar for All grant program?

  • Legal constraints cited by EPA Administrator Lee Zeldin following the repeal of the Greenhouse Gas Reduction Fund.
  • Criticism of the program's complex funding structure, which was claimed to dilute taxpayer dollars.
  • Concerns about the risk of incomplete projects due to the program's structure.
  • Backlash from critics, including legal challenges and concerns about hindering job creation and federal decarbonization goals.
  • Affected households now need to rely on state incentives and the 30% Investment Tax Credit.
  • Some states are planning to expand their own solar initiatives to address the funding gap left by the program's termination.